FT Experts Field 50-Plus Questions on Rally, Eyeing S&P 500 at 8,000

1 articles · Updated · Financial Times · Jun 18

Robert Armstrong and Katie Martin told readers the equity rally can keep running for now, with profits still strong and no clear sign that sentiment has reached a final euphoric peak.
7,420 on the S&P 500 leaves roughly 8% to 8,000, Martin said, while Armstrong argued markets can absorb more issuance and AI spending as long as investors still want risk.
Higher rates and credit stress were the main threats they highlighted: Armstrong said a surprise involving tighter policy or hidden debt could break the bull market, while Martin warned disorderly long-bond yield rises would cause trouble.
US stocks were described as expensive by historical standards and heavily concentrated in big tech, yet both said long-term investors should generally stay invested rather than try to time a correction.
Broader risks they flagged included a shift in global capital flows, Japan's 1% rates pulling money home, and persistent US fiscal deficits eventually testing confidence in Treasuries and other assets.